, 1887-08-28
A CRASH IN WHEAT.
Dresbach & Rosenfeld, the
Bulls. Go Under.
Flood and Mackay Thought to
Be Mixed Up in the Deal.
Other Failures Confidently
Predicted.

SAN FRANCISCO, Aug. 1.-THE an
nouncement was made at | Il 30 this morn
ing that Dresbach & Resented, the bull
operators In wheat, could not keep their
agreement to accept all the wheat rendered
them, and the call board was at once ad-
lourned without any sales being affected.
ms is accepted as a complete collapse of
the wheat ring but what effect it will have
on the street is not yet known.
The full Specification of the crash will
probably not be known for several days.
While Rosenfeld K Dresbach were sup
posed to be acting for John w. Mackay,
James G. Flood and other large stock
holders of the Nevada bank, the deals
were all made in their name and all con-
tracts were made personally with them
without any additional guarantees.
When the corner broke Aug J, Dresbach
Il Rosenteld agreed to pay the difference
between S2.07 and ST.. 10 per GENITAL, or 81
cents per GENITAL, in four monthly pay
ments, h first payment TO fall due Sept.
L. The price of wheat fell steadily to
$l.30, but the bull clique was expected to
be able to carry their big load, and the
announcement was made two days age
that the first installment of the money
would be paid as agreed. The announce
to day, therefore, that the two big brok-
ers would repudiate their paper was the
last straw, and was accepted as "A final
surrender.
1t is illustrated that all the enormous
losses. with the exception of possibly the
81, 900, 900 advanced by the bull clique
early in the deal, is to fall upon the bro
kers and others who had dealings with
these two representatives of other men
whose identity has not been disclosed.
There is considerable excitement on the
street but no failures have yet been re
ported, and while many Of the big houses
have been hit very hard, the hope is ex.
pressed that they will be able to pull
through. Feeling is very bitter among
dealers, and the entire deal is spoken of
as one of the worst in the history of the
trade.
The street is practically at sea regard
ing the outcome and few can be found to
hazard an opinion. The fact is well set
tied that firms having unsettled contracts
with Dresbach x Rosenfeld will have to
bear the big losses growing out of the
deal.
This afternoon John Rosenfeld filed a
deed transferring all his property valued
at 5000, 900, to the Nevada bank. This
is supposed to prove the connection with
the deal. Neither .Mackay nor Flood
could be seen at their offices to day and
it was not expected that they would make
a statement In any event. Vice President
Brinker of the Nevada bank declined to
make a statement of any kind.
John Rosenfeld, in explanation of the
decision reached by himself and Dresbach
to not carry out their contract, said: We
have paid out all the money we had and
can get no more accommodation at the
banks, and lave had to stop. That is all
| there is to it. Some one will make a
great deal OF money out OF this, for those
who have the coin-I mean the people in
England-will be able to pick up the
wheat we are holding for a song. If we
could have gained more time we might
have pulled through. but now all is over
with us. Money has been tight all along,
and the real estate boom has made it
tighter and shut us off from all accommo-
dalton"
The call board has adjourned until lex
Monday, but even though notice has been
given by Dresbach & Resented to sell all
wheat in their name, 1t is believed that
the board will be again adjourned for an
indefinite period, though how this will
mend matters does not appear. AS near
as can be ascertalned, after returning the
original deposit money of buyers and sell
lers, at the rate Of 81 per ton on l03, OOO
tons named in the agreement of Aug. 3,
and which reduced margins from 81. Is
per GENITAL to S2.05, it would require about
100000 to meet this part of the agree
ment.
The inability of Dresbach & Rosenfeld
to pay out any more money therefore
| a,v,, ,l,,,t FI ono t.-, q rrI..t =. IL.
hands of the holders, standing them in
$2.O5 per GENITAL, which cannot be sold
except at panic prices. 1t is feared this
will cause additional trouble in the trade,
for it will involve heavy losses upon hold
ers who had confidence in the ability of
Dresbach & Rosenteld to meet their Obli-
cations.
OF 10000 tons of wheat placed by
Dresbach & Rosenfeld in the hands Of
the directors of the produce exchange as
security for the fulillmcnt of the agree
ment Of Aug. 3, about 5000 tons now
remain, having been released as the mar
gin money was returned. This 5000
which could not be sold to-day at over $29
a ton, or Sl56, 900, is all that the owners
Of the 10000 tons, costing 81. O5 per
GENITAL, or 81 $50 900. nave to secure them
against loss William Dresbach has made
an assignment to G. b. Stone of all his
property for the benefit of his creditors.
The Post says: The feeling is gen
arally prevalent that next week will see
lively times and failures are confidently
predicted. That Dresbach e. Resented
ever really intended to fulfill their agree,
ment is freely secuted by the members of
the bank outside the influence OF the ring,
their intention being simply to play
for time. The declaration made by
Mackay the other day had the effect,
however, of establishing confidence in the
future carrying out OF contracts, as it
tended to confirm the general opinion that
the Nevada bank had more intimate con.
%nection with the deal than its managers
cared to admit.
eff Mackay really meant what he said
about carrying all wheat that was offered,
he has apparently changed his mind in
regard to supporting the individual oper,
arIons of Dresbach & Rosenfeld. The
connection of these gentlemen, while it is
| GtIl anualnnn1 in "a nartaIn an1n1nt nj